What are P2E Games? | Play to Earn Game Business Model

The gaming industry is constantly reaching new heights every year. According to experts, the play-to-earn gaming industry will be 3618 million dollars industry by 2028 at a CAGR of 21.3%. This can be possible only because of the new business modules in the gaming industry like play to earn, move to earn, other web3 games, and metaverse games. Web3 is the driving force behind this new era of gaming.

Play-to-earn crypto games are the fastest-evolving gaming industry in the Blockchain gaming space. The report from DappRader represents that the fall of the crypto market doesn’t affect the play-to-earn games it is still taking its peak and it is still expected to grow more because the gaming community is taking P2E games to a new peak.

The Evolution of Gaming Business Models

The gaming industry has been separated into three categories, pay-to-play games, free-to-play games, and play-to-earn games. Let's take a look at these categories one by one.

Pay-to-Play Games

The pay-to-play game business model will allow gamers to buy the game on a subscription basis before downloading the game.  In simple terms, gamers need to buy the game before they need to download or play it. An example of a pay-to-play game model is Xbox Game Pass, Apple Arcade, EA Origin Access, UPlay+, and much more.

The price of the subscription is based on the demand for the game among gamers. When the game is in more demand among gamers then the price of the subscription may increase. You may wonder how this is gonna benefits the creators. The creators get paid in percentage from the total subscription of the game, the percentage may defer from how much engagement and attention their game attracts compared to other games.

Free to Play Games

Free to play, the term explains it well. This gaming model does not require any kind of payment to download and play the game, the user can enjoy the game for free. But players who want the specific features to upgrade their avatar with game assets and skins will need to pay for that asset. 

The free-to-play business model is the most popular in the gaming industry. Currently, most mobile games work in free-to-play gaming models as well as the PC, some well-known examples are PUBG, Apex Legends, Valorant, etc. in these gaming models the creators generate revenue with in-game purchases and advertisements these are mainstream revenue sources for free to play games.

Play to Earn Games

Play to earn game business model is introduced recently to the gaming industry. The gaming model rewards the player for completing the mission or doing the task, the reward also has a real-world value such as crypto, NFT, etc. 

There are several P2E games available, but some of the popular play-to-earn games are Axie infinity, Sandbox, and God Unchained which are doing great jobs in the Web3 gaming space. Now Let's talk deeply about the business mechanism of play of games and how P2E games generate revenue.

What is a Play to Earn Game?

Play-to-earn game is a next-gen gaming model that rewards the player by completing the mission and playing games. The rewards have a real-world value the player can either trade their rewards for their in-game assets or sell their assets in a marketplace in exchange the player can get a fiat currency. 

Because of its innovative game model, play-to-earn gaming started being flooded by gamers in a quick period. This results in the play-to-earn NFT games recording over a 2000% increase in their user base within the first quarter of 2022, and it is still in a boom. This is how P2E games evolved in recent years.

Business Mechanism of Play to Earn Game

The play-to-earn game mechanism works with the reward strategies. When the player starts playing P2E games, the user gets rewarded after completing the mission or task that the game assigns. The rewards can either be crypto, NFT, or any tokens. The assets that gamers gain in the game can be used to upgrade their avatar and reach out next levels in the game. These p2e game or DApp game have their own form of tokens, these tokens are used to buy stuff in the game or power up the avatars, etc.

The overall game moves around the reward functionalities and the whole mechanism is based on the user's playtime concerning the activities completed within the time frame which varies from each game to game.

Revenue Generating Models of P2E Games

Every play-to-earn game has a different revenue-generating model. For example, here we discuss how Axie Infinity, the popular play-to-earn game generates revenue. 

Before start playing Axie Infinity the player need to buy at least three Axies, Axies is nothing but a creature to play the game, and this is the main revenue for Axie infinity. 

However, they use a variety of revenue models, such as charging 4.25 percent for each transaction that takes place in their marketplace. 

The in-game purchases also go to the creators, of the Axie infinity. This has been done with stablecoin or any other cryptocurrency.

Or the player can do their in-game purchase with the Axie infinity native token called AXS and SLP (Smooth love potion).

SLP and AXS are the only possible way to breed their Axies so they always have demand among the players and they can also be traded or sold in the marketplace.

When the user starts stacking their native token. It will help to improve the gaming economy.

These are all the main revenue streams for the creators of Axie infinity, as mentioned before this is for Axie infinity every play-to-earn game has its way of revenue.

Have a P2E Game Business Model? Maticz Helps you Build it

Maticz is the pioneer in Play-to-earn game development with a proven track record of building web3 and blockchain games over the play-to-earn game concept. Our developers have vast experience in cutting-edge technologies and various gaming engines like unity unreal and more. Our experts will make sure that your game will stand out from the crowd. If you are having a gaming business model struggling with where to start, let the experts do the job for you. Maticz will give you a pitch-perfect game for your business and also for the world of gamers. Launching your play-to-earn game will be a win-win moment for both gamers and creators.

Winding up

Blockchain games are doing great in recent years and there is no stopping the growth of blockchain-based games. The play-to-earn gaming model will take your business to new heights without any doubt. Similarly, Web3 games are doing great among the young generation like the move to earn game, stepn game, etc. the evaluation of web3 makes things possible, and the gaming industry can be redefined with web3 technology. Making your presence in the gaming industry with the next-gen play-to-earn games will make you unstoppable in the gaming space.